Current Gratuity Limit - it is, now 30 Lakh from 20 Lakh?

SunM
A warm greeting to you all out there!

Can any of you please update us on what the current limit of Gratuity is? I have seen somewhere that it is now 30 lakh from 20 lakh. Would appreciate it if you could help clear any doubts.
Madhu.T.K
It is still Rs 20 lakhs. However, any amount in excess of 20 lakhs can be paid, but the additional amount will be taxable.
SunM
Hi Madhu Ji,

I appreciate your response. I was reading an article that stated, "The interim budget for 2019 was announced on 1 February 2019 by the interim Finance Minister Piyush Goyal. In the budget speech, Goyal announced that the gratuity limit will be increased to Rs. 30 lakh from Rs. 20 lakh. Last year, in March, the government had raised the limit for tax-free gratuity to Rs. 20 lakh in the private sector, up from Rs. 10 lakh. Following the implementation of the 7th Central Pay Commission, the upper limit for central government employees was raised to Rs. 20 lakh from Rs. 10 lakh. Employees who have completed a tenure of at least 5 years in an organization will be eligible for benefits under the Payment of Gratuity Act, 1972. However, the organization must have a workforce of at least 10 employees to qualify for these benefits."

Could you please provide clarity on this matter? In your previous post, you mentioned the limit was still Rs. 20 lakh, while the article states it as Rs. 30 lakh.
(https://www.bankbazaar.com/tax/gratuity.html)
Madhu.T.K
There was confusion about this during the budget session. It was a wrong press release. The gratuity limit as per the Payment of Gratuity Act is still Rs 20 lakhs only.
vmlakshminarayanan
Mr. Madhu

https://www.businesstoday.in/budget-...ry/315931.html
https://timesofindia.indiatimes.com/...w/67788567.cms

Not sure about the above. Will it get confirmed during the forthcoming Regular Budget?
Madhu.T.K
Surprising. The leading newspapers write stories without knowing the facts. In TOI, it is written that the ceiling has been increased from Rs 10 lakhs to 30 lakhs. When it is already Rs 20 lakhs, I don't know where they quote it from.
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